HomeRail System Supplier Grows US Production Capabilities and Reduces Costs

Rail System Supplier Grows US Production Capabilities and Reduces Costs

May 1, 2013

Pandrol USA, a supplier to the railroad industry planned on introducing a new product in its New Jersey facility. The company turned to New Jersey Manufacturing Extension Program, Inc. (NJMEP) for a Layout Flow Analysis. As a result, the company was able to successfully introduce its new product, which resulted in increased sales, and did so in a cost effective manner.

Pandrol USA, is a designer, manufacturer and supplier of cost-effective resilient rail fastening systems. The company is part of a 12-country network of operating companies and manufacturing facilities supplying 82 markets. PANDROL Rail Fastenings are the most widely used in the world; its applications range from light rail and high-speed passenger applications to heavy haul freight.

NJMEP and Pandrol have a long history. Working together, Pandrol was able to transition to a lean manufacturing organization thus improving the company’s operating costs and reducing its lead times. The company is focused on its value proposition and has built a culture that is geared towards continuous improvement and elimination of waste.

The company is constantly approached by customers and other agencies suggesting that relocation elsewhere in the USA would cut costs. Rather than considering a move, Pandrol decided to invest in its New Jersey operation and incorporate its Canadian content into its Bridgeton New Jersey facility. The expectation — increase New Jersey sales.

NJMEP assisted Pandrol first in developing a preliminary layout and then the final process layout for the introduction on its new product line. The new process flow needed to include existing products. The scope of the project included: demand calculations, flow considerations, and applying those to the purchase and installation of the equipment required for a successful rollout of its new product.

As a result of Pandrol’s work with NJMEP, the company has made substantial changes that resulted in significant improvements as well as increasing sales and achieving cost savings.

In January of 2011, Lou Notariani, the Project Manager of Pandrol Inc., noted, “NJMEP was instrumental in our shop improvement. The Value Stream Mapping project provided a clear roadmap to improvement.”

When completing the NIST survey, conducted 6 months -1 year after completion of a specific project, Pandrol reported, as a result of its project with NJMEP to conduct a Layout flow analysis, the company:

• Increased sales $300,000
• Achieved a cost savings of $50,000

Mr. Notariani, added, “NJMEP has been and will continue to be a valuable resource to Pandrol.”

NJMEP is currently working with Pandrol on projects in two New Jersey facilities: In one location NJMEP is conducting an analysis and audit of current training policies and procedures; and conducting training to ensure OSHA compliance. In another facility, NJMEP is evaluating the existing safety program and will assist in the development and implementation of a cost effective loss control program.

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New Jersey Manufacturing Extension Program, Inc. (NJMEP) is a not-for-profit company that works with New Jersey’s small to mid-sized manufacturers to help them become more efficient, profitable and globally competitive.